Ethiopia to exploit AfCFTA for new trade, economic opportunities

Addis Ababa, June 22, 2025 (FMC) – The Ethiopian government has expressed its keen interest to exploit the African Continental Free Trade Area (AfCFTA) Agreement to boost new economic opportunities, with a view of transforming the country’s trade and economic landscape.

The statement was made by Ethiopian Minister of Trade and Regional Integration Kassahun Gofe, while addressing a validation meeting on Ethiopia’s National AfCFTA Implementation Strategy, which was jointly organized with the United Nations Economic Commission for Africa (UNECA) on Friday.

The minister said the continental free trade pact has strong potential as it offers Ethiopia and the wider African countries with new economic opportunities by diversifying partnerships, which will ultimately help address the East African country’s current “significant trade deficit.”

As Ethiopia finalizes its national AfCFTA implementation strategy, Gofe said the strategy is “deeply integrated” with the country’s wider development targets, focusing on structural reforms.

“The strategy encompasses bold macroeconomic and structural reforms aimed at enhancing resilience, encouraging private sector-led development, and modernizing our economy in accordance with global best practices,” he said.

The Ethiopian government is taking efforts to open up the country’s economic landscape so as to leverage intra-African trade opportunities through the effective implementation of the AfCFTA, according to the ministry.

The AfCFTA, a flagship initiative of the African Union’s Agenda 2063, aims to create the world’s largest free trade area in terms of the number of participating countries.

Since its entry into force in 2019, a total of 47 African countries, including Ethiopia, have ratified the AfCFTA.

With a market comprising 1.4 billion people and a combined gross domestic product of 3.4 trillion U.S. dollars, the AfCFTA seeks to boost intra-African trade by eliminating trade barriers, particularly for value-added goods.

The agreement, according to ENA’s report, has the potential to generate jobs, create regional value chains, attract investment, and stimulate economic development across Africa, according to the UNECA.